Importance of SMEs and Entrepreneurship in Public and Corporate Sectors

This report discusses the impact and importance of SMEs and entrepreneurship in public and corporate sectors. It defines SMEs and explores their role in the economy. It also discusses the similarities and differences between public and corporate entrepreneurship. The report concludes by highlighting the importance of entrepreneurship in both sectors.

HNBS 309
Entrepreneurial Ventures

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Define SME.................................................................................................................................1
Part 2............................................................................................................................................1
Importance of entrepreneurship in both public and corporate.....................................................4
Similarities between public and corporate entrepreneurship ......................................................4
Conclusion.......................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneur is related to the individual person who innovate the new ideas and plans to create a
new business, and bearing the risk and earn more rewards. It can be said that entrepreneur is an
innovator, who innovate the new ideas, goods and services for the businesses. Entrepreneur plays
an important role in an economy by using their skills and knowledge, they prove that without
risk, it cannot be successful or create a new business (Bhattacharya, 2019). The entrepreneur is
the highly risk taker but also earn highly profit by taking this risk. SME is the small-medium
sized business it also plays an important role for the economy growth; small and medium size
business also need enterprises in their businesses because it helps the small businesses to provide
some innovation ideas to earn more profit.
MAIN BODY
Define SME
Small and mid-size firms (SMEs) are a company which save revenues, properties or
a variety of staffs to below a certain edge. U.S. has its personal definition of what constitutes a
small and medium-sized enterprise. Certain dimension standards must be met and once in a
while the enterprise in which the company operates in is taken into account as well. Every
country have their own definition and set their own guidelines across the industries. It plays a
important role in the economy, provide job opportunities to the people, example of small to
medium enterprise are bar shop, dentist, law office, gym and so on.
Part 2
P5) Interpret relevant data and statistics to relate how micro and small business ventures
impact the economy at different levels.
SME play a important role in econpmy and impact in different levels, they contribute in
employment scale along with the input and output. SME are mainly categorised the number of
workers, different countries have different criteria of the classification. SME helps to create the
new job opportunities and give an innovating a creative idea to solve the problem and enhance
the performance in the competitive market. Now SMEs registered having a high growth rate to
compare to the global industrial sector, it is the fastest dynamic businesses in the world by
changing the online transactions. Advance technology marketing giving the advantage of the
small business entrepreneur to cut the cost on promotion and advertising their product online
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without investing to much in advertising (de Araújo LimaCrema, and Verbano,2020). Along
with the various E- commerce platform support the SMEs to expand their business globally and
improve the performance also. SMEs having a lot of responsibilities in the world, so it divides
into five categories such as technical, hybrid, instructional, functional and sentinel SMEs. This
part helps to classified the specific features and support the work in different ways. But all SMEs
are not making same ideas and innovation, different entrepreneur having a different ideas and
knowledge for their start up.
Impact of SMEs on global economy
The SME sector is beneficial for the economic growth for different countries, and it is especially
popular in emerging countries. It helps to create a positive impact on the macro economy and
several developing countries by making jobs, inspiring people to start their own businesses and
generating income, and promoting social and political stability. The influence of small
businesses to the complete economy is evaluated by observing the growth or decline in GDP and
employment rates. It helps to improve the overall economic health. The main aim of the research
is to identify the contributions of SMEs to the economic growth of the countries.
Impact of SMEs on local and regional economy
SME is beneficial for the local communities because they emotionally rooted in buying and
selling with their family and friends. Small business firms contribute the economic growth and
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also provide the new opportunities. Small businesses firm gives contribution in local economies
by bringing the growth and provide innovation to the community, along with they support to
adapting the changing climates the small business firm are possess the ability to respond and
doing the quickly respond to changing the economic climate. Along with many local customers
are more local for their favourite small business.
Define entrepreneurship?
Entrepreneurship is an individual person who bearing most of the risk to create a new business
and earn profit. It commonly seen as an innovator and creative they always change their strategy
according to the market strategy. It is the person who develops their idea or a commodity and
change into a firm. They are able to take first step and making the world a better place. Common
traits for entrepreneur is creative thinking, take self- initiative, ambitious and goal oriented,
problem solver and many more.
P6) Discuss the differences and similarities between public and corporate
entrepreneurship.
Public entrepreneur- This type of entrepreneur is working for themselves as part rather than for
any organisation or department, it involves the innovation who are combine for public and
private resources for the social objective. Importance of Public entrepreneur it has your own
boss, Income unlimited, no rules and regulation, no need to follow other rules
Corporate entrepreneurship helps the bring the information for everyone who are in business
enterprise works, it helps to create the valuable apparition and grasp between the all mangers. It
helps to create the understanding the base facts that consequence in accelerated and higher
education modern behaviour for the choice for making and tough thinking. The formation of
new data helps companies in three excellent ways is associated to the at
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current existent products in the company. This helps in product refinement and product line
extensions
They allow the workers to take part in group discussion and give a chance to share their ideas to
doing any changes and this grouping activates encourage the employees for doing better
performance in their work. Along with entrepreneur need to provide proper training to their
employees to improve their skills and knowledge and it also helps the business to achieve their
goal effectively and efficiently. Entrepreneur are very concern about their target and they work
continuously to achieving them for the business, they always try doing some positive changes
which help the institution to earn more profit. Along with it also helps to making the different
from other competitors and which is good. Now many small and medium business want the good
entrepreneur for their business because they know that entrepreneur helps to build their
performance and identify the more opportunities to expand their business all over the world.
Public entrepreneurship- This entrepreneurship is handled by the government of different
region and nation. It helps the government to improve their working ability and skills of the
employees which are working in public sector. Along with it also identify the strength and
weakness of the public sector, so that they can work on it and resolve it.
Corporate entrepreneurship- This is related to the individual company or business which is
part of the corporate sector, it helps to giving some innovating ideas to the employees to improve
their work performance.
Importance of entrepreneurship in both public and corporate
Public Corporate
 Job opportunity- It helps to provide
job opportunities to the people which is
beneficial for the economic and
company growth.
 Boost Productivity- Increase
computation and boost the productivity,
because they make innovative plan
which support the company to improve
their performance and productivity.
 Innovative Technology- Support the
company to introduce innovative
technology which helps to save the
time and reduce wastage.
 Maximize Profit- It helps the corporate
company to achieve their goals and
earn maximize profit
 Create new opportunities- Provide
new opportunity for the company
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 Create new market- It helps to create
the new business and new market
which is beneficial for the company
growth.
 Economy growth- Support in economy
growth and national income.
which is beneficial for their
performance.
 Achieve their goals- They helps
corporate company achieve their goals
effectively and efficiently.
Similarities between public and corporate entrepreneurship
Both are merge in the organisation and main focus is doing something unique and innovative
which helps to contribute in developing their knowledge and skills in both the sector public and
corporate (Tong,Wang,and Pu,2022). Along with it also helps the company in both the sector
such they support the company to overcome the loses which is suffered in the time of COVID-
19. Both are making some those actives which helps to improve their performance and reach
their target in proper manner.
 Entrepreneurial process- Both commercial and social entrepreneur mostly focus in
vision and opportunities, they have ability to turn their ideas into reality. They both are
willing to put their effort and take risk to achieve their target and make the idea come
true. Along with it helps to identifying opportunities and transforming the big vision into
achievable operations.
 Seek Outcome- Both the parties seek the outcome which are measured and qualified.
Although entrepreneur they seek the returns on investment which is return percentage for
the monetary investment in a venture.
 Both belong the entrepreneurship fields- The public entrepreneurship is the sub-
species for the entrepreneurship, they doing their business with social goals, the also earn
profit but they make sure social enterprises could be sustainable developments for the
future
 Social responsibilities- Both the party need to fulfil their social responsibility effectively
and efficiently, otherwise they face problem to problem their business achieve.
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Difference between public and corporate Entrepreneurship
Public Entrepreneurship
 It is related to the generating the new
ideas and functioning it
 It is controlled by the government
 They are finding the best way to
resolve the government problem and
give a opinion to take necessary steps
to developing the various opportunities.
Corporate Entrepreneurship
 They are concerned for the individual
which is focus on employee’s
performance.
 It is controlled by the individuals
 The main focus is corporate the
entrepreneurship by making those plan
which helps to earn more profit.
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Conclusion
In the above report went into the detail regarding the topic of SMEs and define the impact
and importance of the small, micro, medium enterprises on the economy at various levels such as
local, regional and national. Along with use the relevant data and statistics to interpret its
findings. Furthermore, in this report it discusses the entrepreneurship in the public and corporate
sectors and give a brief description of similarities and differences of the public and corporate
organisation. Along with it ensure that entrepreneur is very important for both the part because it
helps to building the competitive advantage by the practises of creativity and innovation.
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REFERENCES
Book and Journals
Bhattacharya, C.B., 2019. Small actions, big difference: Leveraging corporate sustainability to
drive business and societal value. Routledge.
de Araújo Lima, P.F., Crema, M. and Verbano, C., 2020. Risk management in SMEs: A
systematic literature review and future directions. European Management Journal, 38(1),
pp.78-94.
Song, H., Yang, X. and Yu, K., 2020. How do supply chain network and SMEs’ operational
capabilities enhance working capital financing? An integrative signaling
view. International Journal of Production Economics, 220, p.107447.
Tong, L.Z., Wang, J. and Pu, Z., 2022. Sustainable supplier selection for SMEs based on an
extended PROMETHEE approach.Ⅱ Journal of Cleaner Production, 330, p.129830.
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